Car sales in India rose to 1,56,018 units in September, the highest level this fiscal, raising hopes of a rebound in the market, which has been reeling under a prolonged slump.

"The good news is that for cars, passenger vehicles, utility vehicles and two-wheelers, September was the best month in terms of absolute numbers this fiscal. I hope we can continue with this momentum," SIAM President Vikram Kirloskar told reporters here.

However, the Society of Indian Automobile Manufacturers (SIAM), struck a cautious note, saying it was unlikely that passenger car sales would post positive growth this fiscal under current economic circumstances.

It said the decline of 4.67 per cent in car sales in the first half of this fiscal was the worst since 2002-03, when sales dropped by 6.96 per cent in the same period.

Asked if the September sales reflected a rebound in the market, Kirloskar said: "It is difficult to say, but we have had a good monsoon and some positives around."

Kirloskar said it was unlikely for car sales to post positive growth this fiscal "unless something really nice happens in the festive season."

"I will be really happy if there is flat or even a slight positive growth this fiscal," he added.

Domestic passenger car sales grew 0.73 per cent in September from 1,54,884 units a year earlier.

Market leader Maruti Suzuki India posted a 14.52 per cent growth in domestic sales at 78,975 units last month as against 68,957 units in the same period last year.